Hedge funds continued their year-long rally in July, posting positive returns for the fifth straight month and sixth out of seven, according to Eurekahedge.

The Eurekahedge Hedge Fund Index rose 2.1% last month to hit 12% on the year, according to preliminary returns. And while Eureka’s index shows hedge funds still beating the broader markets, they didn’t even come close to matching the Standard & Poor’s 500 Index’s 7.4% rise in July.

“The month’s returns were achieved on the back of strong rallies across underlying equity markets despite a rough start to the month,” Eureka said in its report.

Eight of the firm’s nine strategy indices were in positive ground last month, as were all seven of its regional indices. Among the latter, Asia and emerging markets funds were tops; among the former, it was event-driven funds coming out on top.

Eureka also reports that hedge funds have $8 billion more than they did at the end of June, thanks to trading gains and $1 billion in net inflows.

From the current issue of

The ratio calendar combination spread couples two ratio calendar spreads, one using calls and the other using puts. The call strike prices are higher than the put strike prices. This strategy is complex and profit is limited, but if a high amount of time value is involved in the short positions, that profit can be substantial and risk is still limited.